AccorHotels buys majority stake in boutique lifestyle chain 21c Museum Hotels
Even though AccorHotels recently revealed it took a $288 million hit on its 2016 acquisitions of luxury homesharing platform Onefinestay and concierge provider John Paul, it hasn’t deterred the company’s shopping spree.
Even though AccorHotels recently revealed it took a USD 288 million hit on its 2016 acquisitions of luxury homesharing platform Onefinestay and concierge provider John Paul, it hasn’t deterred the company’s shopping spree.
The Paris-based hospitality company on Tuesday announced it intends to spend USD 51 million to acquire an 85% stake in 21c Museum Hotels, a relatively small luxury hotel chain in the United States. It has eight hotels, and three more under development. The deal does not include any real estate.
Under terms of the agreement, the co-founders of 21c Museum Hotels, Laura Lee Brown and Steve Wilson, will retain a 15% stake in the company and will continue to work closely both with AccorHotels and 21c Museum Hotels CEO Craig Greenberg. The deal is expected to close by the third quarter of 2018.
AccorHotels plans to integrate the 21c Museum Hotels brand into its existing upper upscale MGallery soft brand collection of independent hotels from around the world. The deal marks the first time AccorHotels will introduce the MGallery brand to the North American market.
The deal with AccorHotels will give 21c Museum Hotels access to Accor’s global distribution channels and loyalty program, as well as the company’s sales, marketing, and development resources.
Building up AccorHotels’ luxury and lifestyle presence in North America
In June, AccorHotels chief development officer and head of mergers and acquisitions, Gaurav Bhushan told Skift the company was “putting a lot of energy and resources into development [in North America],” particularly on luxury and lifestyle brands.
“Together, we have a tremendous opportunity to grow the 21c brand, as well as introduce MGallery into the North American market, building both brand equities and further expanding the full range of unparalleled experiences for our guests,”Kevin Frid, AccorHotels chief operating officer for North & Central America, said in a statement. “This strategic acquisition marks a new step in AccorHotels’ strategy of being the leading player in the luxury and lifestyle segment in North America.”
For AccorHotels, expanding its MGallery soft brand in the North American market is particularly of interest, as it will allow the company to pursue more independent hotels in the region.
Today, the company has a total of 28 brands, including SBE and 21c.
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